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Copyright © 2010 The Pew Charitable Trusts

901 E St. NW, 10th Floor, Washington, D.C. 20004 I 2005 Market St., Suite 1700, Philadelphia, Pa. 19103

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THE PEW CHARITABLE TRUSTS

The Pew Charitable Trusts applies the power of

knowledge to solve today’s most challengingproblems. Pew employs a rigorous, analytical

approach to improve public policy, inform the public

and stimulate civic life. We partner with a diverse

range of donors, public and private organizations

and concerned citizens who share our commitment

to fact-based solutions and goal-driven investments

to improve society. For additional information

on The Pew Charitable Trusts, please visit

www.pewtrusts.org.

THE PEW ENVIRONMENT GROUP

The Pew Environment Group promotes practical,

meaningful solutions to some of the world’s most

pressing environmental problems.

Joshua Reichert, Managing Director

Phyllis Cuttino, Project Director

Laura Lightbody, Senior Associate

Jessica Frohman Lubetsky, Senior Associate

Brendan Reed, Associate

ABOUT THE REPORT

The Pew Charitable Trusts’ Who’s Winning the 

Clean Energy Race? was developed for public

informational and educational purposes. It reviews

the status of clean energy finance and investment

in the countries that make up the Group of Twenty

(G-20).1 This report complements The Clean Energy 

Economy: Repowering Jobs, Businesses and 

Investments Across America , produced by the PewEnvironment Group and the Pew Center on the

States in June 2009.

The underlying data for this report were compiled

for the Pew Environment Group by Bloomberg New

Energy Finance, the world’s leading provider ofnews, data and analysis on clean energy and carbon

market finance and investment. Bloomberg New

Energy Finance’s global network of 125 analysts

stationed across Europe, the Americas, Asia and

Africa continuously monitor market changes, deal

flow and financial activity, allowing instantaneous

transparency into the clean energy and carbon

markets.

A description of the data collection methods and

practices employed for this report can be found in

the appendix.

ACKNOWLEDGMENTS

We are grateful to our research collaborators at

Bloomberg New Energy Finance, led by Chris

Greenwood with Michael Wilshire, Rachael Norby,

Krishnan Shakkottai, Ethan Zindler, Rob Glen and

Ken Bruder. We also thank David Harwood of Good

Works Group for his work in completing this report.

We also thank staff members of the Pew Center on

the States for their insights, advice and guidance

at critical stages of this project. We are especially

grateful to Kil Huh and Lori Grange for generously

sharing their ideas and suggestions. While they

have screened the report for accuracy, the Pew

Environment Group is responsible for its findings

and conclusions.

1 The Group of Twenty (G-20) was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global

economy. The G-20 is made up of the finance ministers and central bank governors representing the European Union and 19 countries: Argentina, Australia, Brazil, Canada,

China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................ 4

THE EMERGING CLEAN ENERGY ECONOMY ............................................................................................ 6

Global Investments in Clean Energy Are Growing .................................................................................. 6

Global and G-20 Clean Energy Investment, 2005 to 2009 ...................................................................... 7

China Takes the Lead, While the U.S. Slips ............................................................................................. 7

Domestic Policy Choices Play a Critical Role......................................................................................... 10

Wind and Solar Lead Investments ........................................................................................................ 10

Asset Financing Dominates ................................................................................................................... 11

Renewable Capacity Growing Worldwide ............................................................................................. 11

Governments Allocate Stimulus Funds to Clean Energy ....................................................................... 11

About the Investment Data ................................................................................................................... 12

THE GLOBAL CLEAN ENERGY ECONOMY AT A GLANCE ...................................................................... 14

Overall ................................................................................................................................................... 14

Competitiveness Snapshots of G-20 Members .................................................................................... 14

Asset Financing Dominates ................................................................................................................... 16

Public Market Financing ........................................................................................................................ 17

Venture Capital/Private Equity Financing ............................................................................................... 18

Installed Renewable Energy Capacity ................................................................................................... 19

G-20 Stimulus Funding for Clean Energy .............................................................................................. 20

G-20 COUNTRY PROFILES .......................................................................................................................... 21

Argentina ............................................................................................................................................... 22

Australia ................................................................................................................................................. 23

Brazil ...................................................................................................................................................... 24

Canada ................................................................................................................................................... 25

China ..................................................................................................................................................... 26

France .................................................................................................................................................... 27

Germany ................................................................................................................................................ 28

India ....................................................................................................................................................... 29

Indonesia ............................................................................................................................................... 30

Italy ........................................................................................................................................................ 31

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Japan ..................................................................................................................................................... 32

Mexico ................................................................................................................................................... 33

South Africa ........................................................................................................................................... 34

South Korea ........................................................................................................................................... 35

Spain ...................................................................................................................................................... 36

Turkey .................................................................................................................................................... 37

United Kingdom ..................................................................................................................................... 38

United States ......................................................................................................................................... 39

Rest of EU-27 ........................................................................................................................................ 40

APPENDIX: METHODOLOGY ...................................................................................................................... 41

TABLE OF FIGURES

Figure 1. Financial Investment in Clean Energy: Global Trends by Quarter ............................................. 6

Figure 2. Top 10 in Total Installed Capacity.............................................................................................. 7

Figure 3. Top 10 in Increase in Installed Capacity .................................................................................... 7

Figure 4. Top 10 in Overall Clean Energy Investment ............................................................................. 7

Figure 5. Five-Year Growth in Rate of Investment................................................................................... 7

Figure 6. G-20 Members’ Investment in Clean Energy and Their Rank .................................................. 8

Figure 7. Top 10 in Investment Intensity ............................................................................................... 10

Figure 8. Sustainable Energy Financing Continuum .............................................................................. 13

Figure 9. Investment by Financing Type, 2009 ...................................................................................... 15

Figure 10. Investment by Sector, 2009 ................................................................................................. 15

Figure 11. Asset Finance by Sector, 2004-09 ........................................................................................ 16

Figure 12. Asset Finance by Sector, 2009 ............................................................................................. 16

Figure 13. Public Market Investment by Sector, 2004-2009 ................................................................. 17

Figure 14. Public Market Investment by Sector, 2009 .......................................................................... 17

Figure 15. Venture Capital/Private Equity Financing by Sector, 2004-09 ............................................... 18

Figure 16. Venture Capital/Private Equity Financing, 2009 .................................................................... 18

Figure 17. Installed Renewable Energy Capacity: Wind, Biomass and Waste, and Small Hydro .......... 19

Figure 18. Installed Renewable Energy Capacity: Solar, Geothermal and Marine ................................. 19

Figure 19. Stimulus Funding .................................................................................................................. 20

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Executive Summary

This report documents the dawning of a new worldwide industry—clean energy—which has experienced

investment growth of 230 percent since 2005. Demonstrating its strength, the clean energy sector

declined only 6.6 percent in 2009 despite the worst financial downturn in over half a century. In 2009,

$162 billion was invested in clean energy around the world. Rebounding from a sharp downturn in the last

quarter of 2008 and first quarter of 2009, clean energy investments in the G-20 averaged a robust $32

billion in each of the last three quarters of 2009. In an encouraging sign for the future, many governments

prioritized clean energy within economic recovery funding, the bulk of which will reach innovators,

businesses and installers in 2010 and 2011. Clean energy investments are forecast to grow by 25 percent

to $200 billion in 2010.

Accounting for more than 90 percent of worldwide finance and investment, G-20 countries dominate the

clean energy landscape. As the country profiles in this report demonstrate, virtually all G-20 countries have

seen investments grow by more than 50 percent over the last five years.

Within the G-20, our research finds that domestic policy decisions impact the competitive positions of

member countries. Those nations—such as China, Brazil, the United Kingdom, Germany and Spain—with

strong, national policies aimed at reducing global warming pollution and incentivizing the use of renewable

energy are establishing stronger competitive positions in the clean energy economy. Nations seeking to

compete effectively for clean energy jobs and manufacturing would do well to evaluate the array of policy

mechanisms that can be employed to stimulate clean energy investment. China, for example, has set

ambitious targets for wind, biomass and solar energy and, for the first time, took the top spot within the

G-20 and globally for overall clean energy finance and investment in 2009. The United States slipped to

second place.

There are reasons to be concerned about America’s competitive position in the clean energy marketplace.

4  WHO’S WINNING THE CLEAN ENERGY RACE?

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Relative to the size of its economy, the United States’ clean energy finance and investments lag behind

many of its G-20 partners. For example, in relative terms, Spain invested five times more than the United

States last year, and China, Brazil and the United Kingdom invested three times more. In all, 10 G-20

members devoted a greater percentage of gross domestic product to clean energy than the United States

in 2009. Finally, the Unites States is on the verge of losing its leadership position in installed renewable

energy capacity, with China surging in the last several years to a virtual tie.

The U.S. policy framework for reducing global warming pollution and promoting renewable energy

remains uncertain, with comprehensive legislation stalled in Congress. On the other hand, America’s

entrepreneurial traditions and strengths in innovation—especially its leadership in venture capital

investing—are considerable, giving it the potential to recoup leadership and market share in the future.

Policy, investment and business experts alike have noted that the clean energy economy is emerging as

one of the great global economic and environmental opportunities of the 21st century. Local, state and

national leaders in the United States and around the world increasingly recognize that safe, reliable, clean

energy—solar, wind, bioenergy and energy efficiency—can be harnessed to create jobs and businesses,

reduce dependence on foreign energy sources, enhance national security and reduce global warming

pollution.

Nations seeking to compete effectively for clean energy jobs and manufacturing would do well to evaluate

the array of policy mechanisms that can be employed to stimulate clean energy investment. This is

especially true for policymakers in the United States, which is at risk of falling further behind its G-20

competitors in the coming years unless it adopts a strong national policy framework to spur more robust

clean energy investment.

GROWTH, COMPETITION AND OPPORTUNITY IN THE WORLD’S LARGEST ECONOMIES

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GLOBAL INVESTMENTS IN CLEAN

ENERGY ARE GROWING

A new worldwide industry is dawning. Pew found

that overall investment in clean energy grew

230 percent from 2005 to 2009. In 2009, $162

billion was invested globally.2 In the face of the

world economic downturn, 2009 investments

declined only 6.6 percent from the year before.

Demonstrating its staying power, the clean energy

sector outperformed the oil and gas industry, whichhad investment declines of 19 percent in 2009,

according to the International Energy Agency’s 2009

World Energy Outlook .

The Emerging Clean Energy Economy

2 All monetary values are 2009 U.S. dollars unless otherwise noted.

Non-G-20 Countries

G-20 Countries

4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st

2004 2005 2006 2007 2008 2009

$5.1

$3.2 $3.7

$5.7

$8.3$9.1 $9.2

$12.6$13.3

$20.8

$16.9

$27.0

$24.2 $24.3

$29.2

$43.6

$28.4

$38.3 $38.0

$29.6

$20.0

$35.4

$31.4

$35.1

FIGURE 1. FINANCIAL INVESTMENT IN CLEAN ENERGY: GLOBAL TRENDS BY QUARTER (billions of $)

FIGURE 2. TOP 10 IN RENEWABLE

ENERGY CAPACITY (GW)

United States 53.4

China 52.5

Germany 36.2

Spain 22.4

India 16.5

Japan 12.9

Rest of EU-27 12.3

Italy 9.8

France 9.4

Brazil 9.1

FIGURE 3. TOP 10 IN FIVE-YEAR

GROWTH IN INSTALLED CAPACITY

South Korea 249%

China 79%

Australia 40%

France 31%

India 31%

United Kingdom 30%

Turkey 30%

United States 24%

Canada 18%

Rest of EU-27 17%

Investment to Rise 25 Percent

The ongoing priority for energy

security, global warming

pollution reduction and job

creation will drive investment

up 25 percent to a record $200billion in 2010, Bloomberg New

Energy Finance forecasts.

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GLOBAL AND G-20 CLEAN ENERGY

INVESTMENT, 2005 TO 2009

Installed renewable energy capacity increased in2009 to 250 gigawatts (GW), enough to power an

estimated 75 million households and equivalent to 6

percent of the worldwide total.

G-20 nations account for more than 90 percent of

worldwide finance and investment, dominating the

clean energy landscape. Excluding basic research

and development (R&D), more than $110 billion

was invested in the G-20’s clean energy sector.

Investment by virtually all G-20 countries has grown

by more than 50 percent over the past five years.

Rebounding from a sharp downturn in late 2008 and

early 2009, clean energy investments in the G-20

averaged a robust $32 billion in each of the last

three quarters of 2009.

In an encouraging sign for the future, many

governments prioritized clean energy within

economic recovery funding, devoting more than

$184 billion of public stimulus investments to

the sector. The true impact of that support isstill to come, with the bulk of the funds reaching

innovators, businesses and installers in 2010

and 2011.

CHINA TAKES THE LEAD,

WHILE THE U.S. SLIPS

China is emerging as the world’s clean energy

powerhouse. For the first time, China took the top

spot for overall clean energy finance and investment

in 2009, pushing the United States into secondplace. Having built a strong manufacturing base

and export markets, China is working now to meet

domestic demand by installing substantial new

clean energy-generating capacity to meet ambitious

renewable energy targets.

FIGURE 5. FIVE-YEAR GROWTH IN

INVESTMENT

Turkey 178%

Brazil 148%

China 148%

United Kingdom 127%

Italy 111%

United States 103%

France 98%

Indonesia 95%

Mexico 92%

Rest of EU-27 87%

The United States ranked second in G-20 clean

energy investments for the first time in five years.

U.S. clean energy investments also fell 40 percent,compared with the previous year. Further declines

were avoided through long-term extension of

federal production and investment tax credits

and initial funding from the American Recovery

and Reinvestment Act, which helped to shore up

investments in the latter half of 2009. Despite

this influx of investment, there are reasons to be

concerned about the U.S. competitive position in

the clean energy marketplace.

FIGURE 4. TOP 10 IN CLEAN ENERGY

INVESTMENT

China $34.6 billion

United States $18.6 billion

United Kingdom $11.2 billion

Rest of EU-27 $10.8 billion

Spain $10.4 billion

Brazil $7.4 billion

Germany $4.3 billion

Canada $3.3 billion

Italy $2.6 billion

India $2.3 billion

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1. China $34.6 billion2. United States $18.6 billion3. United Kingdom $11.2 billion4. Rest of EU-27 $10.8 billion

(this category includes Austria, Belgium, Bulgaria, Cyprus,Czech Republic, Denmark, Estonia, Finland, Greece, Hungary,Ireland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands,Poland, Portugal, Romania, Slovakia, Slovenia and Sweden)

 RANK  INVESTMENT  RANK 

FIGURE 6. G-20 MEMBERS’ INVESTMENT IN CLEAN ENERGY AND THEIR RANK

5. Spain6. Brazil7. Germany8. Canada9. Italy10. India11. Mexico12. France

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NVESTMENT RANK  INVESTMENT

13. Turkey $1.6 billion14. Australia $1 billion15. Japan $800 million16. Indonesia $354 million17. South Africa $125 million18. Argentina $80 million19. South Korea $20 million

 

$10.4 billion$7.4 billion$4.3 billion$3.3 billion$2.6 billion$2.3 billion$2.1 billion$1.8 billion

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Even though overall clean energy finance and

investment in the United States more than doubled

during the past five years, its growth rate laggedbehind five other G-20 countries: Turkey (178

percent), Brazil and China (148 percent each),

the United Kingdom (127 percent) and Italy (111

percent). In addition, the policy framework in the

United States for reducing global warming pollution

and increasing renewable energy remains uncertain,

with comprehensive legislation stalled in Congress.

Other countries with strong clean energy policies—

the United Kingdom, Germany, Spain and Brazil—

remained leaders in 2009.

For additional detail on the performance of individual

G-20 members, see Global Clean Energy Economy

at a Glance on Page 14 and the country profiles

beginning on Page 21.

DOMESTIC POLICY CHOICES

PLAY A CRITICAL ROLE

Domestic policy decisions appear to have shifted

the competitive positions of G-20 member

countries. Nations such as China, Brazil, Germany

and Spain, which have adopted national renewable

energy and energy efficiency standards, feed-in

tariffs,3 carbon reduction targets and/or financial

incentives for investment and production, are

assuming leadership positions in the clean energy

sector. China, for example, has set ambitious

targets for wind, biomass and solar energy. EU

members have an economywide cap on carbon

emissions and ambitious reduction goals. Brazil has

set ambitious targets for ethanol fuel.

Other nations seeking to compete effectively

for clean energy jobs and manufacturing could

mimic the array of policy mechanisms that can be

employed to stimulate clean energy investment.

The United States is a case in point. With a mixed

policy framework (for instance, no carbon policy and

a patchwork of state renewable energy standards),

the United States has a comparatively weak clean

energy economy given the relative size of its overall

economy. The United States, with 0.13 percent,

ranked 11th among G-20 nations for 2009 in

clean energy investment intensity—clean energy

investment as a percentage of gross domestic

product (Figure 7). However, with significantnatural and intellectual resources and a strong

culture of entrepreneurship, a strengthened policy

framework could enable the United States to regain

a leadership role in the coming years.

WIND AND SOLAR LEAD INVESTMENTS

The wind energy sector was the primary recipient

of clean energy investment in 2009, reflecting its

mature status as a large-scale power generation

source. Wind energy accounts for more than 50percent of worldwide clean energy investment

and almost half of installed clean energy capacity

worldwide. Recognized as a clean, safe, price-

competitive resource, wind energy is being

deployed as an important new source of electricity

generation in the leading clean energy economies.

The solar sector, on the strength of U.S., Spanish

3 Feed-in tariffs are a policy mechanism to incentivize renewable energy production. They guarantee that electricity generated from renewable energy sources will be purchased byutilities at a set price over the life of a contract, usually long-term.

FIGURE 7. TOP 10 IN INVESTMENT

INTENSITY

Spain 0.74%

United Kingdom 0.51%

China 0.39%

Brazil 0.37%

Rest of EU-27 0.26%

Canada 0.25%

Turkey 0.19%

Germany 0.15%

Italy 0.14%

Mexico 0.14%

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and EU investments, also figures prominently in

G-20 investment portfolios. Although smaller in size

than its wind energy counterpart, the solar sector ispoised to expand. Solar energy prices have declined

significantly in recent years, and the potential of

new, thin-film technologies positions solar for

significant growth.

By contrast, the sharp spikes in biofuel investment

that occurred from 2006 to 2007 have plunged in

the last two years.

ASSET FINANCING DOMINATESPew identified trends in three types of investments

and financing that are critical to technology R&D,

manufacturing scale-up and project rollout in the

clean energy sector:

1. Asset financing. Typically associated with

the installation of clean energy equipment

and generating capacity, asset financing is

the dominant class of clean energy finance.

Because of the fiscal crisis, asset financing

in 2009 fell 6 percent from the year before.

Still, $94.9 billion, more than 80 percent

of all clean energy financing, was invested

in physical assets that generate energy

(power, heat, fuels), with onshore wind

being the dominant sector because of its

relative maturity and scalability. China was

the leader in asset financing, followed by

the United States.

2.  Public market financing. This class,which includes initial public offerings

(IPOs), enables companies to raise capital

for expansion and growth. In 2007, public

funding peaked at $23 billion. But G-20

public offerings declined by 45 percent over

the last two years, with many companies

canceling their IPOs because of poor

market conditions. Total public fundraising

of $12.1 billion in 2009 constituted less

than 11 percent of G-20 clean energy

investment. However, an extended

IPO drought was broken late in 2009,

particularly in China.

3. Venture capital/private equity financing.

This class is closely linked with technology

innovation and development. Reflecting

the overall market downturn, venture

capital/private equity financing dropped

43 percent in 2009, to $6.4 billion. The

United States remained the overwhelming

leader in venture capital investment, with

priority given to next-generation biofuels,

advanced solar, energy efficiency and smart

grid technologies. Brazil came in a distant

second.

RENEWABLE CAPACITY

GROWING WORLDWIDE

The United States led the world in installed wind,

biomass and geothermal power capacity but

was very close to losing its top position in overall

installed capacity as China surged forward. Despite

pioneering development of numerous key solartechnologies, the United States lagged well behind

G-20 leaders in installed solar capacity. Germany

was the undisputed leader in the solar sector.

The advent of regional and global carbon trading

markets, along with strong policy frameworks in

countries such as Spain, Brazil, India and China,

accounts for the relative strength of these nations’

clean energy sectors.

GOVERNMENTS ALLOCATE STIMULUS

FUNDS TO CLEAN ENERGY

Global stimulus plans target $184 billion for clean

energy, led by the United States ($67 billion) and

China ($47 billion). By the end of 2009, only 9

percent ($16.6 billion) had reached the sector, with

the United States and South Korea spending the

most to date. Two-thirds of the stimulus funding is

projected to be spent during 2010 and 2011.

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About the Investment Data

This report presents data on 2009 clean energy finance and investment in G-20 nations. The

primary focus of this report is on investment because it propels the innovation, commercialization,

manufacturing and installation of clean energy technologies. Public and private investments in R&D

(totaling some $25 billion in 2009) are not included in the G-20 investment presentations. No data

are presented for G-20 members Russia and Saudi Arabia because clean energy investment there

negligible. Spain, a member of the European Union but not an individual member of the G-20, is

presented independently in this report in view of the size and relevance of its clean energy sector.

For more details on the research methodology underlying this report, please see the appendix.

Bloomberg New Energy Finance tracks thousands of transactions across the spectrum of clean

energy finance, from R&D funding and venture capital invested in technology and early-stage

companies, to the public market and asset financing used to finance business growth and clean

energy deployment. The key investment categories are:

Asset Financing: This category includes all money invested in renewable energy

generation projects, whether from internal company balance sheets, debt finance or

equity finance. It excludes refinancing and short-term construction loans. Asset financing

typically is associated with installation of clean energy equipment and generating

capacity.

Public Markets: This category includes all money invested in the equity of publicly traded

companies developing renewable energy technology and clean power generation.

Public market finance is typically associated with the scale-up phase, when companies

are raising capital in public stock markets to finance product manufacturing and rollout.

Investment in companies setting up generating capacity is included in the next category.

Venture Capital/Private Equity : This category includes all money invested by venture

capital funds in the equity of companies developing renewable energy technology. In

general, venture capital is invested at the innovation stage, when companies are proving

the market potential of goods and services.

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America’s Clean Energy Economy

Pew first documented the clean energy economy in the United States in June 2009 in its report

The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America.

According to Pew, “a clean energy economy generates jobs, businesses and investments while

expanding clean energy production, increasing energy efficiency, reducing greenhouse gas

emissions, waste and pollution, and conserving water and other natural resources.” The definition

provides a groundbreaking framework for tracking jobs, investments and economic growth and

for allowing the public and private sectors to evaluate the effectiveness of policy choices and

investments.

The study found that clean energy is emerging as a vital new sector in the U.S. economic

landscape. It counted jobs, companies and investments in every state and found that from 1998

to 2007, jobs in the clean energy sector grew 2.5 times faster than jobs overall. By 2007, the lastyear for which data are available, more than 68,000 businesses across 50 states and the District

of Columbia had created 770,000 jobs in the clean energy economy. Further, our research showed

that these jobs are poised for even greater growth, driven by increasing consumer demand,

venture capital infusions by investors eager to exploit new market opportunities, and state and

federal policy initiatives. “Clean tech is where [information technology] was 30 years ago and

biotech was 20 years ago; we’re way early in the innovation cycle,” said David Prend, managing

partner of RockPort Capital and director of the National Venture Capital Association.

Technology

Research

Technology

Development

Manufacturing

Scale-Up

Rollout(Asset Finance)

Government

Venture Capital

Private Equity

Process

Funding

Key: Public Equity Markets

Mergers and Aquisitions

Credit (Debt) Markets

Carbon Finance

FIGURE 8. THE SUSTAINABLE ENERGY FINANCING CONTINUUM

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OVERALL

Five-Year Surge in Clean Energy Investment:

Between 2005 and 2009, clean energy investments

increased 230 percent globally. In the past two

years, G-20 members invested an average of

$32 billion each quarter in the sector. Installed

renewable energy capacity in 2009 increased to

250 GW, enough to power an estimated 75 million

households and equivalent to 6 percent of the

worldwide energy generation total.

Clean Energy Economy Weathers the Global

Financial Crisis: In 2009, more than $162 billion

was invested globally. In the face of the global

economic downturn, that figure declined only 6.6

percent compared with 2008. Moreover, the clean

energy sector outperformed the oil and gas industry,

which had investment declines of 19 percent

in 2009, according to the International Energy

Agency’s 2009 World Energy Outlook .

G-20 Countries Dominate the Clean Energy

Economy, Compete for Leadership: G-20

countries account for more than 90 percent of allclean energy finance and investment. Countries

with strong policy frameworks (China, Germany,

Spain and Brazil, for example) have the strongest

clean energy sectors relative to the size of their

economies, while those with weaker policy

frameworks (such as the United States, Japan,

Australia and South Africa) lag behind their G-20

counterparts.

Countries Prioritize Clean Energy in Recovery

Strategies: Global stimulus plans target $184 billion

for clean energy, led by the United States ($67billion) and China ($47 billion). The full impact is still

ahead: In 2009, less than 10 percent of these funds

reached the clean energy sector; two-thirds of the

stimulus funding is projected to be spent during

2010 and 2011.

Asian Investment Soars in 2009: Clean energy

investment in Asia increased 37 percent in 2009

to $39.02 billion. Strong demand for wind power in

China and the availability of credit in Asian markets

drove growth in the region. By contrast, investment

declined 33 and 16 percent, respectively, in the

Americas and Europe as the economy slowed,

energy demand sagged and credit markets

tightened.

2009 Venture Capital Investments Drop More

Than 40 Percent: Venture capital investments fell

more than 40 percent, to $6.4 billion. The United

States still dominates this asset class, accounting

for 60 percent of all venture capital/private equity

financing.

Estimated $200 Billion to Be Invested in 2010 in

Energy, Climate and Jobs: The ongoing priority for

energy security, global warming pollution reduction

and job creation will drive investment up 25 percent

to a record $200 billion in 2010, Bloomberg New

Energy Finance forecasts.

Looking Ahead

Pew is working on a second report that will investigate the direction of the clean energy economy

in G-20 countries in the years to come. That report will harness Bloomberg New Energy Finance’s

advanced modelling capabilities to explore the contribution clean energy can make to the world’s

economic and environmental future if certain policies and measures are adopted nationally by

governments to accelerate private finance and investment.

The Global Clean Energy Economy at a Glance

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COMPETITIVENESS SNAPSHOTS

OF G-20 MEMBERS

China: With clean energy investments up morethan 50 percent in 2009, China took the lead

among G-20 nations for the first time. China’s 2009

financing totaled $34.6 billion (Figure 4). Ambitious,

mandatory targets for wind and solar power and

the ample availability of credit in China have been

the primary engines of that nation’s clean energy

growth. Having built a strong manufacturing base

and export markets, China is working now to meet

domestic demand by installing substantial new

clean energy generating capacity to achieve its

renewable energy targets.

United States: The United States closed 2009

with total investments of $18.6 billion. The United

States lost the top spot in the G-20 for the first

time in five years. The economic recession and

investor uncertainty about tax incentives early in

the year slowed investments, which were down

40 percent from 2008 levels. State renewable

energy standards and enactment of longer-term

production and investment tax credits in February

spurred substantial investments later in 2009. The

United States continued to dominate the venture

capital/private equity investments associated with

technology innovation. Investors continued to

look to Congress to pass comprehensive climate

and energy legislation that will provide long-term

certainty for investment.

0 5000 10000 15000 20000 25000 30000 35000

Efficiency & low carbon

tech/services

Biofuels

Other renewables

Solar

Wind

Argentina

South Africa

Indonesia

Japan

Australia

Turkey

France

Mexico

India

Italy

Canada

Germany

Brazil

Spain

Rest of EU-27United Kingdom

United States

China

FIGURE 10. INVESTMENT BY SECTOR, 2009 (billions of $)

34.6

18.6

11.210.8

10.4

7.4

4.3

3.3

2.6

2.3

2.1

1.8

1.6

1.0

0.8

0.4

0.1

0.1

United Kingdom: Large offshore wind deals

backed by the government put the United Kingdom

in third place in the G-20, with 2009 investments of$11.2 billion. The United Kingdom also was at the

forefront of marine energy investments.

Spain: Within the European Union, Spain remained

a clean energy leader with 2009 investments of

more than $10 billion, much of it in solar energy.

Spanish budget constraints forced cutbacks in

incentive programs, which significantly curtailed

2009 investments and will likely continue to do so

in the future.

Brazil: Brazil, which is poised for significant growth

in wind energy investments, stood out as a G-20

leader. Brazil invested $7.4 billion in clean energy

in 2009.

Germany: Germany remained a clean energy

stalwart in terms of manufacturing and installed

capacity, especially in the solar sector. Overall,

Germany invested $4.3 billion in clean energy

in 2009.

European Union: EU carbon policies established

European renewable energy markets early, and

investment and installed capacity continue at a

steady pace across Europe.

0 5000 10000 15000 20000 25000 30000 35000

Venture capital/private equity

Public markets

Asset finance

Argentina

South Africa

Indonesia

Japan

Australia

Turkey

France

Mexico

India

Italy

Canada

Germany

Brazil

Spain

Rest of EU-27United Kingdom

United States

China

FIGURE 9. INVESTMENT BY FINANCING TYPE, 2009 (billions of $)

 

34.6

18.6

11.210.8

10.4

7.4

4.3

3.3

2.6

2.3

2.1

1.8

1.6

1.0

0.8

0.4

0.1

0.1

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ASSET FINANCING

Asset financing, typically associated with the

installation of clean energy equipment and

generating capacity, is a barometer of clean energy

deployment and the creation of new jobs. It is the

dominant class of clean energy finance.

Because of the financial crisis, asset financing in

2009 was down 6 percent from 2008. Still, more

than 80 percent of all clean energy financing ($95

billion) was invested in physical assets that generate

energy (power, heat, fuels), with onshore wind

being the dominant sector because of its relative

maturity and scalability (Figure 11).

Key observations include:

Asset financing in clean energy increased

threefold from 2005 levels. These

investments helped increase total installed

renewable energy capacity to 250 GW

worldwide.

China led the way in asset financing with

investments of $29.8 billion, 86 percent of

its total clean energy financing (Figure 12).

The United States was next with $11.2

billion, followed by the United Kingdom at

$10.7 billion, much of it focused on offshore

wind assets. Spain was the other top assetfinancing destination with $10.4 billion.

U.S. asset financing was down in response

to the financial crisis, uncertainty about

the Production Tax Credit and a lack of

credit liquidity. Asset financing for biofuels

production in the United States also

contracted significantly from 2006-07 highs.

 

0

0000

0000

0000

0000

0000

0000

Biofuels

Solar

Other renewables

Wind

200920082007200620052004

llFIGURE 11. ASSET FINANCE BY SECTOR, 2004-09 (billions of $)

 

13.8

29.1

55.5

83.4

101.4

94.9

0 5000 10000 15000 20000 25000 30000

Biofuels

Other renewables

Solar

Wind

Argentina

South Africa

Japan

Indonesia

Australia

India

Turkey

France

Mexico

Canada

Italy

Germany

Brazil

Rest of EU-27

Spain

United Kingdom

United States

China

 

FIGURE 12. ASSET FINANCE BY SECTOR, 2009 (billions of $)

 

- ll

29.8

11.2

10.7

10.4

9.1

6.7

3.7

2.6

2.1

2.1

1.7

1.6

1.6

0.9

0.4

0.2

0.1

0.1

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PUBLIC MARKET FINANCING

Public market financing enables companies to raise

capital for expansion and growth.

As the clean energy economy emerged in the

middle of the past decade, many clean energy

companies used stock markets to fund their growth

plans. At its peak in 2007, public market funding

reached $22 billion (Figure 13). But G-20 public

offerings declined by 45 percent in the past two

years, with many companies canceling their IPOs

because of poor market conditions. Total public

fundraising of $12.1 billion in 2009 constituted less

than 11 percent of G-20 clean energy investment

(Figure 14). However, an extended IPO drought was

broken late in 2009.

l

r r l

l r

r

l r

l

r l

r

r l

 

r

-

 

0

5000

000

000

000

000

Other renewables

Biofuels

Efficiency & low carbon

tech/services

Wind

Solar

200920082007200620052004

llFIGURE 13. PUBLIC MARKET INVESTMENT BY SECTOR, 2004-09 (billions of $)

 

0.9

4.9

11.2

22.2

13.7

12.1

Key observations include:

Investor demand, which had inflated clean

energy company valuations significantly,collapsed during the financial crisis,

lowering stock prices and dramatically

slowing market investment in the sector.

Established companies are now raising

capital to strengthen their balance sheets

rather than to fund growth plans.

Nonetheless, European wind and solar

companies are financing expansion oftheir manufacturing capacity and project

portfolios.

Strong IPO activity occurred in China in late

2009 to finance growth in manufacturing

capacity.

0 1000 2000 3000 4000 5000

Biofuels

Other renewables

Efficiency & low carbon

tech/services

Solar

Wind

Italy

Spain

Brazil

France

Australia

United Kingdom

Germany

Japan

India

Canada

Rest of EU-27

United States

China

r r l

l

l r

r

l r

FIGURE 14. PUBLIC MARKET INVESTMENT BY SECTOR, 2009 (billions of $)

 

- ll

4.6

3.6

1.1

1.0

0.7

0.6

0.4

0.1

0.1

~0

~0

~0

~0

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VENTURE CAPITAL/PRIVATE

EQUITY FINANCING

Venture capital and private equity financing areclosely linked with technology innovation and

development (Figure 15).

Reflecting the overall market downturn, this class

of clean energy finance was down 44 percent in

2009. The United States remained the enduring

leader in venture capital investment, reflecting its

strong foundation of technology innovation (Figure

16). Brazil came in a distant second, while venture

capital investments in other developing countries

such as China and India were negligible.

Key observations include:

There was a significant influx of venture

capital into next-generation biofuels such as

cellulosic and algae fuels.

New solar and energy efficiency/smart grid

technologies also saw substantial venture

capital investment.

In response to the financial crisis, venture

capitalists retreated from new companies

and concentrated instead on well-

established entities. For example, in 2009

there were only 70 investments in Series A

shares (first stock offerings by a company)

compared with 150 in 2007.

This situation could persist until venture

capitalists shift investments as companiesscale up with public market financing.

0

2000

4000

6000

8000

10000

12000

Other renewables

Solar

Wind

Biofuels

Efficiency & low carbontech/services

200920082007200620052004

1.4

2.3

5.1

7.1

11.3

6.4

FIGURE 15. VENTURE CAPITAL/PRIVATE EQUITY FINANCING BY SECTOR,

2004-09 (billions of $)

0 500 1000 1500 2000 2500 3000 3500 4000

Other renewables

Biofuels

Wind

Solar

Efficiency & low carbon tech/services

Australia

Italy

Spain

India

France

China

Germany

Canada

United Kingdom

Rest of EU-27

Brazil

United States

r r l

l r

l

l r

r

3.9

0.7

0.6

0.5

0.2

0.2

0.2

0.1

0.1

~0

~0

~0

FIGURE 16. VENTURE CAPITAL/PRIVATE EQUITY FINANCING BY SECTOR,

2009 (billions of $)

 

- ll

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INSTALLED RENEWABLE

ENERGY CAPACITY

The total global renewable energy capacity is 250GW. Key observations include:

At the end of 2009, the United States led

the world in installed wind, biomass (Figure

17) and geothermal power capacity (Figure

18) but was very close to losing its lead in

overall installed capacity to China. Despite

pioneering development of numerous key

solar technologies, the United States lags

well behind G-20 leaders in installed solar

capacity.

Germany is the undisputed leader in the

solar sector with a total installed capacity of

5.3 GW. Japan and Spain, both with about

2.1 GW, were the next-leading countries for

installed solar power capacity.

China doubled its wind capacity in 2009 in

pursuit of an ambitious target of installing

30 GW of wind by 2020. China also led the

G-20 in small hydro capacity and moved

aggressively in the solar sector.

The advent of regional and global carbon

trading markets, along with strong policy

frameworks in countries such as Spain,

Brazil, India and China, accounts for the

relative strength of these nations’ clean

energy sectors.

China

United States

Germany

Spain

India

Rest of EU-27

Japan

France

Brazil

Italy

Canada

United Kingdom

Australia

Russia

Mexico

Turkey

Argentina

South Korea

South AfricaIndonesia

Wind

Small hydro

Biomass and waste

FIGURE 17. INSTALLED RENEWABLE ENERGY CAPACITY, 2009 (in GW)

(wind, small hydro, biomass and waste)

 

~0

0.4

0.5

0.5

0.6

1.7

2.7

3.2

7.3

7.5

8.6

8.9

9.0

10.1

11.6

16.2

20.2

30.9

49.7

52.2

 

-

 

-

 

Solar

Geothermal

Marine

 

FIGURE 18. INSTALLED RENEWABLE ENERGY CAPACITY, 2009 (in GW)

(solar, geothermal, marine)

Germany

United States

Japan

Spain

Mexico

Italy

Indonesia

Rest of EU-27

France

South Africa

China

IndiaSouth Korea

United Kingdom

Brazil

Russia

Canada

Australia

Turkey

Argentina~0

0.1

0.1

0.1

0.1

0.1

0.2

0.2

0.3

0.3

0.3

0.5

0.7

1.0

1.1

1.5

2.1

2.7

3.7

5.3

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G-20 STIMULUS FUNDING

FOR CLEAN ENERGY

An estimated $184 billion was earmarked forclean energy by the various government stimulus

packages announced in late 2008 and early 2009.

Key observations include:

The greatest amount of stimulus money

was allocated for clean energy by the

United States and China.

By the end of 2009, only 9 percent ($16.6

billion) had reached the sector. The most

money had been spent by the United States(about $8 billion) and South Korea (nearly

$3.3 billion).

According to industry estimates, two-thirds

of financial recovery funding is projected to

be spent during 2010 and 2011.

The United States allocated stimulus

funding for energy efficiency, renewable

energy deployment, transportation andsmart grid technology.

China intends to spend $46.9 billion in

stimulus funding on energy efficiency,

clean vehicles, grid infrastructure and other

clean energy technology. Its “Golden Sun”

initiative will grant up to 50 percent of the

installation cost of photovoltaic power

plants in China.

The South Korean government intends to

increase its share of the overseas green

market by allocating stimulus funding to

boost exports of LED lighting products,

solar cells, hybrid cars and other low-carbon

technology products.

$66.6

$46.9

$27.8

$12.7

$8.6

$3.6

$4.2

$4.1

$3.7

$2.7

$2.5

$1.0

United States

China

South Korea

Rest of EU-27

Japan

Germany

Australia

United Kingdom

Spain

France

Brazil

Canada

FIGURE 19. ANNOUNCED 2008-09 STIMULUS FUNDING (billions of $)

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G-20 Country Profiles

GROWTH, COMPETITION AND OPPORTUNITY IN THE WORLD’S LARGEST ECONOMIES

The following pages profile the clean energy sector in each of the G-20 member countries. These profiles

highlight each country’s priorities and progress, along with key renewable energy targets and incentives

developed to encourage growth in the clean energy sector.

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APPENDIX: METHODOLOGY

All figures in this report, unless otherwise credited, are based on the output of the Desktop database of

Bloomberg New Energy Finance, an online portal to the world’s most comprehensive database of investors,

projects and transactions in clean energy. Data are categorized by country. Members of the European Union

not profiled individually here are aggregated as “Rest of the EU-27.”4 

The Bloomberg New Energy Finance Desktop collates all organizations, projects and investments according

to transaction type, sector, geography and timing. It covers 11,000 transactions, 20,000 projects and 30,000

organizations (including start-ups, corporations, venture capital and private equity providers, banks and other

investors).

Research included the following renewable energy projects: all biomass, geothermal and wind generation

projects of more than 1 megawatt, all hydro projects of between 0.5 and 50 megawatts, all solar projectsof more than 0.3 megawatts, all marine energy projects, and all biofuel projects with a capacity of 1 million

liters or more per year.

Annual investment in small scale and residential projects, such as micro wind turbines, solar water heaters

and bio-digesters, is estimated. These estimates are based on annual installation data, provided by industry

associations and REN21.5 

Energy efficiency investment includes financial investment in technology companies plus corporate and

government investment in R&D. It excludes investment in energy efficiency projects by governments and

public financing institutions. Where deal values are not disclosed, Bloomberg New Energy Finance assigned

an estimated value based on comparable transactions. Deal values are rigorously rechecked and updated

when further information is released about particular companies and projects. The statistics used are historic

figures, based on confirmed and disclosed investment.

Bloomberg New Energy Finance continuously monitors investment in renewable energy and energy

efficiency. This is a dynamic process. As the sector’s visibility grows, information flow improves. New deals

come to light and existing data are refined, meaning that historical figures are constantly updated. The data

published in this report are current as of March 2010.

4 The “Rest of the EU-27” category includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lithuania,

Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.

5 REN21 is an independent, international nongovernmental organization that chronicles renewable energy trends around the world and connects governments, industry,

organizations and others to encourage rapid expansion of renewable energy worldwide.

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